HC Deb 18 April 1989 vol 151 cc167-8
1. Mr. Marlow

To ask the Secretary of State for Employment if he has reached any conclusions on the future of wages councils following the public consultation; and if he will make a statement.

The Minister of State, Department of Employment (Mr. John Cope)

My hon. Friend will have seen from the answer that I gave on 21 March to a similar question from my hon. Friend the Member for Mid-Kent (Mr. Rowe) that a decision on the future of the wages councils will be taken later this year.

Mr. Marlow

In view of the Government's massive majority last night, does my right hon. Friend feel that he will be able to secure a majority to get rid of this further legislative relic of the decaying vegetation of socialism? Can my right hon. Friend reassure the House that he has another secret and sudden Bill, dripping wet with printer's ink, to bring before an eager and expectant House?

Mr. Cope

The only assurance that I can give my hon. Friend and the House is that no final decision has yet been taken, but that it will be taken later in the year.

Mr. John Evans

Is it not a scandal that a number of employers pay their employees less than the wages councils' statutory minimum wage? If the Government abolish the wages council, what steps do they intend to take to protect people from such vicious exploitation?

Mr. Cope

Last year about 97 per cent. of the workers in wages councils industries were paid at least the minimum due. That is the result of recent inspections. However, we must also balance job prospects and numbers of jobs, as well as the considerations mentioned by the hon. Gentleman.

Mr. Budgen

Was not the original idea of the wages councils to protect the weakest employees who might not be able to negotiate adequately with their employers, and wast not the compromise by which young employees were taken out of the wages councils a ridiculous and illogical one? Should not the Government now move towards straightforward abolition?

Mr. Cope

It was a sensible thing to do at the time, but it is right to review the position now.

Mr. Tony Lloyd

Recognising that there is once again a considerable head of steam among Conservative Members for the abolition of this so-called decaying vegetation of socialism, will the Minister explain why, in consultation exercises, virtually all those who responded from various industries were unhappy about the abolition of the wages councils?

Mr. Cope

On the contrary, in the six largest councils, which represent about 94 per cent. of all workers covered by wages councils, a majority of the employer bodies wanted abolition.

Mr. Gregory

Does my right hon. Friend agree that many of the wages councils are anachronistic? Few Members represent people who work, for example, in the area covered by the ostrich feather and artificial fancy flower wages council?

Mr. Cope

Yes, there are a number of small wages councils in rather exotic industries.